Relying on the support of local governments in recent years, the domestic LED industry throughout an unprecedented investment boom . However, in view of the prospects for industrial development to support government policies , most companies had to face losses LED difficulties , and even triggered a heated meeting of the recent wide closures . Because the entire LED industry is currently caught in a structural overcapacity crisis two years ago, around the introduction of competing investment planning and construction in LED production capacity has far exceeded the actual market demand .Insiders said that the lack of upstream core technologies , China LED companies get together in the low-end multi- domain package, application , etc., and the resulting product homogeneity serious problems , coupled with declining purchasing power of U.S. and European markets , except for some high-end products outside , the overall downward trend in orders . " 95% of the domestic LED lighting market is the government orders ." Insiders said. Information from public view , government orders basically tun mode. Headquartered in Xiamen Sanan Optoelectronics , there are projects in Huainan City , LED lights orders two cities fall Sanan Optoelectronics ; BDO Runda headquartered in Zhuhai, also announced the end of November to get Zhuhai 30,000 LED street light project . Wuhu while gathered three safety optoelectronics, BDO Runda two giants , so Wuhu LED lights project orders two sharing .The first three quarters , A-share listed companies, 20 LED only seven business growth , leading enterprises Sanan Optoelectronics maintain profitability , but net profit growth of 14% lower than a year earlier. Next year reshuffle to be drained at least half of the company , which is the period of time within the LED industry mutual spread judgment.It is understood that entering 2013 , LED product prices keep falling , some LED lighting products have been close to the price of compact fluorescent lamps , which initially with the alternative advantages this objective and stimulating market demand. Related companies admitted that from the current situation , their performance better than in 2012 , but still expect the Government to give this emerging industry for more subsidies. The idea that there are currently less than 200 billion yuan in the LED industry , there have been more than 5,000 enterprises , concentration is low . In the future , want to upcoming industry mergers and acquisitions " ready ." |
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Government Orders Are Leading LED Industry